In the third quarter GDP contracted a seasonally and working-day adjusted 0.2% quarter-on-quarter, down from market expectations of a 0.1% drop. The reading contrasted the 0.3% expansion recorded in Q2 and marking the first contraction in the last seven quarters and the largest decrease since the first quarter of 2009. On an annual basis, the economy expanded 0.2%, below the 0.7% rise recorded in the previous quarter and market expectations of a 0.5% rise. In addition, the reading marked the slowest expansion since Q4 2009. The quarterly contraction was driven by the deterioration of domestic demand, which an improving contribution from the external sector was not able to compensate. Private consumption contracted 0.2%, contrasting 0.1% rise recorded in Q2, while fixed investment dropped an even larger 0.8%, down from the 0.1% increase recorded in the previous three-month period. Meanwhile, exports of goods and services rose 1.6%, up from the 1.0% rise recorded in the previous quarter, while imports contracted 1.1%, virtually in line with the 1.2% drop in Q2. As a result, the external sector's net contribution to overall growth rose from plus 0.6 percentage points in Q2 to plus 0.8 percentage points in Q3.
GDP contracts in Q3
September 9, 2011
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Italy Economic News
October 14, 2016
According to revised data released by the Italian Statistical Institute (ISTAT), consumer prices fell 0.2% from the previous month in September.
October 10, 2016
In August, industrial output increased 1.7% from the previous month, accelerating from July’s revised 0.7% increase (previously reported: +0.4% month-on-month).
October 3, 2016
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose from 49.8 in August to 51.0 in September, taking it above the 50-threshold that separates expansion from contraction in the manufacturing sector. September’s result mainly reflected a return to growth in new orders, which, in the previous month, had dropped slightly for the first time in over one-and-a-half years.
September 30, 2016
According to provisional data released by the Italian Statistical Institute (ISTAT), consumer prices fell 0.2% over the previous month in September, contrasting August’s 0.2% increase and marking the lowest result in seven months.
September 28, 2016
The National Institute of Statistics’ (Istat) composite business confidence indicator (IESE, Istat Economic Sentiment Indicator), which covers the manufacturing, construction, service and retail sectors, increased from a revised 99.5 in August (previously reported: 99.4) to 101.0 in September. All four categories of the indicator improved compared to August.